Accessing Your Clients' Data

At this time of year, every practitioner begins the process of gathering data from their business clients in preparation for year-end financial statements and tax returns. In the old world, that meant asking your clients to bring in the “shoe box” so you could rummage through and turn the mess into a nice organized, meaningful set of records. Thank goodness we’ve progressed way beyond that!

In this article, we’ll discuss several technical approaches to aid accountants and consultants in accessing client data.

In today’s world, the process is less about shoe boxes, and more about gaining access to the clients QuickBooks (or other software) data file along with other electronic documents kept by the client. However, even today, we have similar problems to the ones we had in the “shoe box” years. The shoe box has been replaced by a QuickBooks data file, but we still need to “rummage” through this data file, find and correct errors, prepare a working trial balance, create adjustments, prepare and update fixed asset schedules, and finally prepare and present financial statements and tax returns.

The Problem:
The first problem you encounter with accessing your client’s data file is HOW to access the file. If you’re considering sending CDs in the mail, think again. That’s way too slow, and it’s expensive, and it forces the client to get involved beyond what most of them understand.
You need to access the client’s data in the most efficient way possible, and you’d like all data access to be:

•  Safe. There must be no (or negligible) risk of data loss due to access.
•  Secure. The access method must ensure that no unauthorized person gains access to the data.
•  Easy. Access to the file should not require much understanding, training, or “work” for the client.
•  Instant. Access to the file should be “instant”, or as fast as possible.
•  Inexpensive. Access to the file should be inexpensive, or ideally free.
•  Controllable. Access to the file should be controllable by the accountant or consultant. That is, you don’t want your client to do much, if anything, in order for you to access their data file.

There are several needs for this general area of data access and the solutions vary depending on what you’re trying to accomplish. For example, occasionally you need to transfer the data from the client’s computer to the accountant for in-depth troubleshooting, cleanup, adjustments, and financial statements. The best solution for this type of engagement is “File Transfer.”
At other times, you want to have real-time, remote access to the client’s live data for the purposes of problem solving, client support. The best solution for this type of engagement is “Remote Access Screen Sharing.”

And sometimes, you need an always-available wide-area-network (WAN) connection that provides multi-user access to the data file. In addition to allowing the accountant access to the client data, this allows clients who have multiple offices to enter data into the same data file simultaneously. The best solution for this type of engagement is “Terminal Server” or a technology like “Internet File Sharing.”

Finally, you may decide to go completely Web based, and use one of the Online Accounting products available.

Something that should go without saying is that no matter which solution you adopt, you don’t want to create a situation where data is entered into two (or more) different data files so that files become out of sync with each other. Even though it should go without saying, remember, clients are involved here, so sometimes you have to be very literal when explaining to them what’s going on.

The Solutions:
There are several solutions depending on what you are trying to accomplish. It is not uncommon for more than one solution to be utilized depending on your situation. Please remember your clients are involved in the process. You must consider ease of use, time to implement, and cost when making your decision.

Here is a quick review of some solution types along with links to solutions for each type of engagement.

File Transfer
RAS (www.RemoteAccounting.com)
This service was designed by accountants for accountants with a goal of creating a fast and secure way to transfer data between themselves and their clients.

With this service, the accountant purchases the service so there is no cost to the client. RAS installs a transfer tool (software) on both the accountant's and the client's computer. To use the service, the client connects to the Internet, enters their password, and clicks one button to SEND a compressed, encrypted version of the data file to their accountant. The client can choose to send a “review copy”, or a “working copy” of the data, and depending on that choice, the accountant will get a view-only copy (review copy), or a read-write copy.

The key here is that the system differentiates between view-only and read-write copies of the data files. This is important to prevent the disastrous situation of having two separate copies of the data file with two different sets of data. To provide safe keeping of the data, backups are automatically created on both the client’s and the accountant’s computers. Additionally, for extra safety, RAS keeps a before and after snapshot on the accountant’s computer. From the client’s perspective, there is no software or additional hardware to purchase and the service provides a very simple “one-click” interface that is easy for them to understand and use. It also provides an extra safety net to the client by ensuring that the accountant always has a backup of their data file. Another important part of this type of service is customer support. Since clients and technology are involved, you know there will be problems, so the best you can hope for is support for when things go wrong. RAS has a fantastic support staff and they will walk you and your clients through every step of getting set up and using the service. Based on cost, implementation, and ease of use RAS would be an excellent choice for your file transfer needs.

RAS offers a free 30 day trial of their service. For further information, check the special offer page.

Remote Access Screen Sharing
For Remote Access (live data manipulation of data on the client’s computer), several solutions are available in the market. WebEx is integrated into QuickBooks, but PCAnywhere and similar products provide essentially the same benefit. With Remote Access, the data remains on the client’s computer while the accountant “logs in” remotely to a “session” for screen sharing. The only problem with this technology, no matter which product you use, is performance. Because you are logged in to the remote computer, and all screens and keyboard strokes are transferred back and forth over the Internet, performance suffers. For this reason, I recommend remote access for short, online training or trouble-shooting sessions only.

Terminal Server
To create an always-available wide-area-network (WAN) connection, there are also a few solutions from which to choose. One company that provides a service in this arena is Insynq, Inc. with its e-accounting line. They provide a “virtual desktop” environment using Citrix servers that you access over the Internet. You put QuickBooks and your data file on the server, and then use it remotely. The client and the accountant can both simultaneously access this remote server by logging into two (or more) separate sessions. Some accountants are also hosting Terminal Servers in their office, but most accountants find the overhead and liability of this to be technically challenging and cost prohibitive.

Internet File Sharing
This technology involves creating a remote, Internet-hosted virtual disk drive that you “share” with your local PC, and any other users you choose. Mangomind (www.mangomind.com) is a company that provides a nice solution for this. It allows the client and the accountant to use their local copy of QuickBooks and open the same file remotely. Although this technology works well for one user at a time, accessing the data file from any of several different locations, it may not be the best approach for providing both accountant and client simultaneous access to the same data file. Check it out further to see if it’s the right approach for your needs.

Another promising file sharing approach is offered by Groove Networks (www.groove.net). This revolutionary service provides file “synchronization” between multiple computers (e.g., client and account). By creating “shared workspaces” on your client’s computer, you can maintain a synchronized copy of their data file on your local computer and have a continuously updated or synchronized copy of their data file available to you at all times. We’re still investigating this technology, but so far we’re very intrigued by how this technology could provide QuickBooks consultants with always-available copies of the most recent version of their clients’ QuickBooks files. Check out their web site for more information about the service.

Online Accounting
With online accounting, you switch to a whole new world where all of your interaction with the software and data is done using Internet Explorer while logged in to a remote web site. Two solutions in this area are QuickBooks Online Edition (www.quickbooksonline.com) and NetSuite Small Business from NetSuite (www.netsuite.com).

It seems that everyone is beginning to adopt at least one remote access solution for their practice. No matter what products and technologies you choose for your practice make sure you understand your needs and those of your clients. You may utilize a few solutions for different situations. For example, you will use File Transfer for adjustments and tax work. You will use WebEx for quick training and support sessions and online accounting or terminal server technology for daily sharing of data entry. Try them out and learn more about them so you can make informed decisions when the need arises.